Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-11-12
palled the capitalists of the nation for more

injustice of requiring and expecting repay
ment of the bonds by the companies, other
wise than in the manner stipulated, nor in
his opposition to Senator Co,lamer's amend
ment. The majority of the Senate was no
doubt with them, as is shown by the SUBJ
sequent course OF the debate, and the final
action of the Senate on the amendment.
1t was q notable feature of the debate in
the Senate, June 10, 1862, on the motion to
reconsider Senator Collamer's amendment
to the Pacific Railroad bill, making pay
ment OF the bonds by the companies i'm
perative, that, of all who took part, there
was not one who defended the amendment
except Senator Collamer himself All the
rest condemned it as both injudicious and
unjust That seemed TO be the prevailing
sentiment among the Senators present. 1t
is very clear, therefore, that the amend
ment was adopted in the first place through
inadvertence and failure TO apprehend its
real significance on the part OF the friends
of the bill. Among those who participated
in the discussion on the amendment was
Senator McDougall of California, who had
the hill in charge. He frankly confessed
that he did not at first see the vital objec-
tons to the amendment, and he took occa-
sion again to avow his expectation and un-
Outstanding that the bonds were to be paid,
and would be paid, by the companies in
service to the Government. He said:
trust the amendment will be reconsidered
At the time it was suggested | did not see the
serious objection TO it l see now. L wish to say
with regard to this obliquity the gentleman (Mr.
Collamer) seems to perceive in the appearance
of this bill, that it was not designed that the
Government should foreclose q mortgage on this
road if TIE road was completed in good faith,
and did the Government business. As l have
had occasion before TO remark. the Government
is now paying over 81, O0O, 900 per annum for the
service which this road is bound to perform.
That is about 100 ner cent more than the max
imum of interest upon the entire amount OF
bonds that will be issued by the United States
when the road is completed. The Government
is to-day, on the peace establishment, without
any more necessity, paying for the same service
100 per cent. more than the entire interest on
| the amount of bonds called for by the bill Be-
sides that. it is provided that per cent of the
ne, proceeds shall be paid over to the Federal
Government every year.
Now let say, if this road is to be built, it is
TO be built rot merely by the money advanced
by the Government but by money out of the
pockets of private individuals. If there are to
be great sacrifices in the accomplishment of a
great national purpose, and this is admitted to
be great national purpose one demanded as a
political necessity, why should the Government
draw from the pockets of private citizens $50
600 600, TO be embarked in an enterprise that
will have no net proceeds, that will pay no cent
of dividends? Upon the hypothesis of the Sem
atcr from Vermont this Government should
build the road If 1t cost SlOO,0O00OO, and then
spend S.. 10000 to run the road. better prop
osition has been advanced here in this bill. 1t
| is proposed that the Government shall advance
500 900 coo or rather their bonds at thirty years
as the road is completed in the course of Sc
ries of years; that the interest at no time can
1 be equal to the service to be rendered by the
road as it progresses, and that the Government
really requires no service, except compliance
on the part of the company with the contract
made II was not intended that there should
| be a judgment of foreclosure and a sale OF this
road on failure to pay. l wish 1t to be dis
tinctly understood that the bill was not framed
with the intention to have foreclosure.
Mr.. Collamer-Then what was that part OF
the bill providing that the Government may
take possession of it put in for?
Mr.. Bougall-In case they tail to perform their
contract. That is another thing; that is a slip
| ulation that is forfeiture in terms OF law, a
very different thing from foreclosure for the
non -payment of bonds. The calculation can be
simply made, that at the present amount OF
| transportation over the road supposing the
Government did no more business, that that
alone would pay the interest and the prin-
| cipal of the bonds in less than twenty years,
| making il direct piece of economy if the Gov
eminent had to pay them all. Gong. Globe, I'd
Sess., 9th Cong. PIP. 2Sl6, 2ol7.)
In the course of the same discussion SEN
ator Latham, of California, among other
| things, after some remarks on the disincli-
nation of capitalists to invest in the enter
| terprise if the conditions OF the Govern
| ment advance of money should be made
| too stringent, said
After all it is but an experiment 1t may be
profitable. The friends of the measure believe
it will be. They says they believe it will be So
Judging by other railroads throughout the coun-
| try, but to say that it would be a matter OF
absolute certainty, as a mathematical demon
| stration, would be an absurdity. Now, you ask
| individuals TO come forward and subscribe their
| money with the condition attached that when
the bonds fall due, if they not paid the road
shall be forfeited to the Government as in the
| case of an absolute mortgage. No man will put
his money into an enterprise of that character
But if you give them to understand that when
| the mortgage falls due they can continue to
apply five per cent. of the net proceeds for the
performance of the stipulation, and that that
| shall go as provided, III part payment of the
| debt, holding the property in their hands until
1 they are able by this application to extinguish
the principal of the debt there is an induce
| ment for men to go on and invest capital in it
| That was the theory and purport of the bill
| that they might go on and invest their capital
with this Government aid given to them. II il
proves successful, as they understand, they will
pay it all off. If it does not prove successful
| thew will apply certain proceeds as stipulated
in the bill, for the eXtinguishment of the prin-
cipal pro rata until all is extingushed: and if il
| is never eXtinguished, as the Senator from Yer
mont has said, the bill does not purport TO be a
mortgage, but it is really donation. gift to
| them. That is thetheory Of the bill and nothing
more or less. Gong. Globe, I'd Sess 81 Cong, p.
| 26lS1
The discussion of the amendment term
mated that day without a vote. On the
day following, when the matter again
came, before the vote was taken, Senator
Wilson, of Massachusetts. announced to
| the Senate that he had seen certain propo-
sitions prepared by Senator Clark, of New
Hampshire, which he stated that he was
certainly willing to adopt" Senator
Clark stated that he had shown the same
| propositions to Senator Collamer and Sem
ator McDougall, who were also willing to
agree to them. To permit him to offer his
propositions vote was had on the motion
to reconsider Senator Collamer's amend
ment, and the motion prevailed Senator
Collamer then Withdrew his amendment.
and Senator Clark moved to amend section
6 of the bill by inserting after the word
company" in the second line of the sec
ton the words shall pay said bonds at
maturity and" which amendment was
adopted. On the further motion of Senator
Clark the fifth section of the bill was
amended by striking out after the word
company" in lines thirty and thirty-one
the words shall at once vest in the United
States, and the same shall Immediately"
and inserting in lieu thereof the word
may" (Cong. Globe, ID sess., 37th Cong,
p. 2S33). Sections 5 and of the bill now
stand in the Act in the form in which they
were put by these amendments of Senator
Clark. Bearing in mind the course and
spirit of the debate of the day before, of
which these amendments were the out
come, and bearing in mind also that the
amendments were proposed by a Senator
who openly ayowsd his belief that the road
would not pay even if constructed, for
nothing, and of course therefore would not
be able to pay the bonds except in services
ETC., and that they were agreed to by Sena-
tor Wilson, who had declared over and
| over again, his solemn conviction that it
was folly to expect payment in any other
way, and that it would be ruinous as well
| as grossly unjust to require it, as
| well as by Senator McDougall
! the special champion of the measure
| who had so often stated his expectation
that payment ample and sufficient, would
be made by the said services. we cannot
avoid the conclusion that, whatever was
the actual effect of the amendments, the
design of them was certainly not to REQUIRE
absolute payment at maturity in any other
mode than that specified in the sixth Sec
ton. The object of the amendments. what
ever may be their effects. was certainly and
obviously to give the Government a means
of enforcing performance OF their contract
by the companies in good faith, if perform
ance was possible, and to "bring them M. y
as Senator Wilson put it, if they should be
guilty of dereliction, and yet to leave room
fny I:harol onI